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QUESTION PAPER BOOKLET CODE :

A
425
Question Paper Booklet No.

Roll No. :

Time allowed : 3 hours Maximum marks : 100

Total number of questions : 100 Total number of printed pages : 20
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PART—I

1. Current Assets are those assets : 3. Which of the following is correct ?

(A) The company shall not issue sweat

(A) Which can be converted into cash
equity shares for more than 15% of
within 12 months
the existing paid up equity share capital
(B) Which can be converted into cash
in a year or shares of the issue value
within a period normally not exceeding
of rupees five crore, whichever is
12 months higher.

(C) Which can be converted into cash (B) The company shall not issue sweat

within an operating cycle which nor- equity shares for more than 15% of

the existing paid up equity share capital

mally does not exceed 12 months.
in a year or shares of the issue value
(D) Which are held for their conversion into
of rupees 5 crore, whichever is lower.
cash within an operating cycle or a
(C) The company shall not issue sweat
period of 12 months equity shares for more than 25% of
2. The figures appearing in the Financial the existing paid up equity share capital

Statements may be rounded off to the nearest in a year or shares of the issue value

of rupees 5 crore, whichever is higher.

crore, only if Turnover is ..............
(D) The company shall not issue sweat
(A) less than ` 100 crore
equity shares for more than 25% of
(B) ` 100 crore or more
the existing paid up equity share capital
(C) more than ` 100 crore
in a year or shares of the issue value
(D) more than ` 500 crore of rupees 5 crore, whichever is lower.

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4. Financial statements are used by : 7. On 30th June, 2018, two-third of the shares
(A) Investors of S Ltd. (with total capital of ` 48,00,000)
(B) Creditors
was acquired by H Ltd. The balance sheet
(C) Regulators
of S Ltd. showed a debit balance
(D) All of the above
` 24,00,000 on 1st January, 2018 and a
5. The Escrow account under Regulation 9(xi)
credit balance of ` 14,40,000 on 31st
of SEBI (Buy back of securities) Regula-

tions, 2018 does not include : December, 2018. The investment by H Ltd.

(A) Cash deposited with a scheduled in shares of S Ltd. is ` 36,00,000. Calculate

commercial bank the ‘‘cost of control’’ in this acquisition :

(B) Bank guarantee in favour of the (A) ` 7,20,000
merchant banker
(B) ` 6,20,000
(C) Deposit of acceptable securities with
(C) ` 3,60,000
appropriate margin, with the merchant
(D) ` 1,80,000
banker
8. CARO 2016 is applicable to :
(D) Deposits of acceptable securities with

appropriate margin, with the company (A) Banking Companies and Insurance

6. Every Company having Net Worth of ` Companies

.......... shall constitute a corporate social (B) One Person Company and Small
responsibility committee of the Board. Companies
(A) 100 crore or more
(C) Companies registered for Charitable
(B) 200 crore or more
Purposes
(C) 500 crore or more
(D) Foreign Companies
(D) 1000 crore or more

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9. On 31st March, 2019, X Ltd. has 8% fixed
Deposit (Date of FD 1st March, 2019, 11. ‘‘Satyam Vada, Dharam Chara’’ is :
maturing on 31st May, 2019) of ` 3,00,000.
Interest is received on monthly basis. While (A) Motto of the ICSI
preparing Cash Flow Statement as per
AS-3 : (B) Vision Statement of the ICSI
(A) ` 2,000 (interest) will be added to net
profit while calculating net cash inflow (C) Mission Statement of the ICSI
after tax from operating activities
(B) ` 3,00,000 will be treated as cash (D) Objective of the ICSI
outflow in investing activities
12. Under Ind AS 1 , presentation of any items
(C) Both (A) and (B)
(D) None of the above
of income or expense as extraordinary item
10. Which of the following is a Small and
Medium Sized Company (SMC) as per the
is :
Companies (Accounting standards) Rules,
2006 :
(A) Separately disclosed
(A) X Ltd. has appointed Merchant
bankers to prepare a Red-herring
(B) Shown as a part of statement of profit
prospectus for the purpose of filing the
same with SEBI
and loss
(B) Y Pvt. Ltd. engaged only in insurance
broking business has a turnover of
(C) Prohibited
` 55 crore (including other income of
` 5 crore), GST collected of ` 1 crore
(D) None of the above
and shown as Unsecured Loan and
Secured Loan from bank of ` 9 crore
13. A person who owes money to the business
and public deposits of ` 1 crore.
(C) Z Pvt. Ltd., acquired 51% equity in
is a ..................
a listed company. It has a turnover of
` 50 crore and borrowings of ` 10
(A) Debtor
crore.
(D) W Pvt. Ltd. has a tumover of ` 55
(B) Creditor
crore (including other income of ` 5
crore) and took Secured Loan from
(C) Investor
bank of ` 10 crore and public deposits
of ` 1 crore which were fully paid
(D) Promoter
before the end of the financial year.

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14. A Company shall disclose by way of notes,
additional information regarding aggregate
expenditure and income on any item of
income or expenditure which exceeds :
(A) 1% of the revenue from operations or
` 1,00,000, whichever is higher
(B) 1% of the revenue from operations or
` 1,00,000, whichever is lower
(C) 1% of the revenue from operations or
` 10,00,000, whichever is higher
(D) 1% of the revenue from operations or
` 10,00,000, whichever is lower
15. If the Articles of Association are silent
regarding interest on calls-in-arrears, the
minimum rate of interest which can be
charged on calls-in-arrears is :
(A) 12% p.m.
(B) 10% p.a.
(C) 12% p.a.
(D) None of the above
16. Which of the following is not a method of
redemption of debentures ?
(A) By payment in lumpsum
(B) By payment is Instalments
(C) By purchase in open market
(D) By conversion into short term loans
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17. Every company required to create/maintain
Debenture Redumption Reserve shall before
the 30th day of April of each year, deposit
or invest (as the case may be) at least
............ % of the amount of its debentures
maturing during the year ending on the 31st
day of March next year in the prescribed
mode.
(A) 5
(B) 10
(C) 15
(D) 25
18. Every non-listed public company must have
at least one woman director, if it has :
(A) paid up share capital of at least ` 100
crore
(B) turnover of at least ` 100 crore
(C) in aggregate, outstanding loans/
borrowings/debentures/deposits of at
least ` 50 crore
(D) None of the above
P.T.O.
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19. The areas of corporate governance included 22. IASB stands for :

in Companies Act, 2013 are : (A) Indian Accounting Standard Board

(A) Independent directors and woman
(B) International Auditing Standard Board
director and Corporate Social
(C) International Accounting Standard
Responsibility Committee
Board
(B) Audit Committee, Internal Audit and
(D) International Assurance Service Board
Serious Fraud Investigation office
23. The structure of IFRS Foundation consists
(C) Nomination and Remuneration
of :
Committee and Stakeholder relationship

Committee (A) International Accounting Standards

(D) All of the above Board (IASB), IFRS Foundation

20. Which of the following is not a cash flow Trustees and IFRS Foundation

for a company ? Monitoring Board

(A) Dividends (B) IFRS Foundation Trustees, IFRS
(B) Proceeds from issuance of share capital
Foundation Monitoring Board and
(C) Amortisation of preliminary expenses
IFRS Advisory Council
(D) Interest payments
(C) IFRS Foundation Monitoring Board,
21. AS 3 and AS 17 are not applicable in their
IFRS Advisory Council, International
entirety to :
Accounting Standards Board (IASB)
(A) Level II Entities

(B) Level III Entities (D) International Accounting Standards

(C) SMCs Board (IASB), IFRS Foundation

(D) All of the above Trustees and IFRS Advisory Council

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24. Ind AS 20 requires government grants of 27. The maximum amount of capital a company

the nature of promoters contribution : can issue is called .............

(A) to be credited directly to capital reserve (A) Issued Capital

(B) Paid up Capital
and treated as a part of shareholders
(C) Authorized Capital
funds
(D) Called up Capital
(B) to be recognized as income over the
28. Neel Ltd. purchased a building worth
periods
` 99,00,000 and issued 12% Debentures
(C) Not to be recognized
of ` 100 each at a premium of 10%. What
(D) Either (A) or (B)
will be the amount of premium ?
25. Provision is : (A) ` 8,00,000
(A) an unknown liability but its amount and (B) ` 9,90,000
due date are determinate (C) ` 9,00,000
(B) an unknown liability and its amount and (D) ` 10,00,000

due date are indeterminate 29. The Chief Accountant of TT Ltd. gives the

(C) a known liability and its amount and following data regarding its six segments :
` in crore
due date are determinate
Particulars M N O P Q R Total
(D) a known liability but its amount and
Segment Assets 9 9 55 9 9 9 100
due date are indeterminate
Segment Results –19 –162 18 10 –19 10 –162
26. A balance sheet has two parts to it, i.e.
Segment Revenue 161 29 29 28 27 26 300
I. Equity and Liabilities and
The Reportable Segments as per AS 17
II. ........................................
are :
(A) Shareholder’s fund (A) M, N
(B) Trade receivables (B) M, N, O
(C) Inventories (C) M, N, O, P
(D) Assets (D) M, N, O, P, R

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30. Market Value Added is : 34. AS-7 issued by ICAI deals with ...........
(A) = Market Value of equity – Book value
(A) Disclosure of accounting policies
of equity
(B) Revenue Recognition
(B) = Present value of all future EVA

(C) = Shareholder Value Added (SVA) (C) Construction contracts

(D) = Both (A) and (B) (D) Government grants

31. What is the full form of CARO ? 35. The Advisory Council is the formal advisory
(A) Company Account’s Repository Order
body to the :
(B) Company Account’s Reports Order
(A) International Accounting Standards
(C) Company Auditor’s Report Order

(D) Company Assets Revaluation Order Board

32. Cash payments to and on behalf of employees (B) Trustees of the IFRS Foundation.

is an example of .................
(C) IFRS Foundation Monitoring Board
(A) Cash flow from operating activities
(D) Both (A) and (B)
(B) Cash flow from investing activities
36. Ind AS 11 requires contract revenue to be
(C) Cash flow from financing activities

(D) None of the above measured at .............

33. AS 18 and AS 24 are not applicable in their (A) Net realisable value
entirety to :
(B) Fair value of consideration received/
(A) Level II Entities
receivable
(B) Level III Entities
(C) Consideration received/receivable
(C) SMCs

(D) All of the above (D) None of the above

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37. Share Options Outstanding Account will be 40. Ind AS 34 requires the following in the

shown in the Balance Sheet of a company contents of an interim financial report in

under the heading addition to what was required under previous
(A) Share Capital standard AS 25 :
(B) Reserves & Surplus
(A) A condensed balance sheet
(C) Non-current Liabilities
(B) A condensed statement of profit and
(D) Current Liabilities
loss
38. Forfeited shares can be re-issued at ..........
(C) A condensed cash flow statement
(A) Par
(D) A condensed statement of changes in
(B) Premium
equity
(C) Discount
41. Shareholder Value Added (SVA) is :
(D) Any of the above
(A) = Economic profits of a business –
39. Saket Ltd. purchased a machinery worth
minimum return required by all
` 1,20,000 and building worth ` 2,00,000
providers of capital
from Rashmi Ltd. for an agreed purchase

consideration of ` 3,00,000 to be satisfied (B) = Economic profits of a business –

by the issue of 3,000, 10% debentures of minimum return required by all

` 100 each. Calculate the amount to be Shareholders only

transferred to capital reserve A/c : (C) = Economic profits of a business –

(A) ` 10,000 minimum return required by Equity

(B) ` 20,000 Shareholders only

(C) ` 30,000 (D) = Book value of equity – Cost of
(D) ` 40,000 equity

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42. In case of a financial enterprise, Interest 45. Public Interest Committee (PIC) established

received on Debentures held as Investment by IPSASB consists of individuals from

the :
is ..................
(A) International Monetary Fund
(A) Operating activity
(B) International Organization of Supreme
(B) Investing activity
Audit Institutions
(C) Financing activity (C) Organization for Economic Co-
(D) None of the above operation and Development and the

43. GAAP stands for : World Bank Group

(A) Generally accepted accounting (D) All of the above

46. No issue of bonus shares shall be made by
principles
a company out of :
(B) Generally accumulated adherence
(A) Its free reserves
policy
(B) The securities premium account
(C) Generally accounting adherence policy
(C) Capitalizing reserves created by
(D) Generally assisted accounting principles revaluation of assets
44. .............. are set of accounting standards (D) The capital redemption reserve account

notified by the Ministry of Corporate Affairs 47. The Association of International Certified
Professional Accountants launched in 2017,
which are converged with International
bringing together the expertise and capabilities
Financial Reporting Standards.
of the :
(A) International Accounting Standards
(A) AICPA and CIMA
(B) Indian Accounting Standard
(B) AICPA and FASB
(C) Indian Auditing Standard (C) IFRS Foundation and FASB
(D) International Auditing Standards (D) CIMA and FASB

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48. Preliminary expense is a ............ asset. 52. The Institute of Chartered Accountants in
(A) Current Australia and the New Zealand Institute of
(B) Fixed Chartered Accountants amalgamated to

(C) Tangible become one body :

(D) Fictitious (A) CA ANZ

49. Ind AS 113 deals with : (B) ICA ANZ

(A) Fair value measurement (C) ANZ CA

(B) Joint arrangements (D) ANZ ICA

53. Loans from banks repayable on demand will
(C) Financial instruments
be classified in the Balance Sheet of a
(D) Insurance contract
company as :
50. The words ‘To Balance b/f ’ or ‘By Balance
(A) Short-term borrowings
b/f ’ are recorded in the ‘Particulars Column’
(B) Long-term borrowings
at the time of posting of :
(C) Other Current Liabilities
(A) all compound entries
(D) Other Long-term Liabilities
(B) an opening entry
54. X Ltd. has 5,000 AC in stock on 31st
(C) a closing entry
March, 2019. The cost of each AC amount
(D) an adjusting entry
to ` 10,000. There is firm commitment of
51. Five years ago X Ltd. had issued 12%
sale of 1,000 AC by the company in April,
Debentures of ` 30 lakh (redeemable in six
2019 @ ` 15,000 per AC. However, the
equal annual Installments). These Debentures
general price of this AC at year end amounts
will be shown in the Balance Sheet of a to ` 9,500 per AC. Calculate the Value of
company under the heading : Closing Stock as per AS-2.
(A) Non-current Assets (A) ` 480 lakh
(B) Non-current Liabilities (B) ` 475 lakh
(C) Current Assets (C) ` 530 lakh
(D) Current Liabilities (D) None of the above

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55. ............... prescribes the basis for 58. The total capital of subsidiary company is

presentation of general purpose financial ` 3,00,000 and out of this, ` 2,40,000

statement to ensure comparability both with is owned by holding company. What is the
amount of minority interest, if % of outside
the entity’s financial statements of previous
shareholder is 20% ?
periods and with the financial statements of
(A) ` 2,40,000
other entities.
(B) ` 60,000
(A) Ind AS 1 (C) ` 48,000
(B) Ind AS 2 (D) None of the above
(C) Ind AS 3 59. Profit on revaluation of assets to be shown
(D) Ind AS 4 as ............ in the consolidated Balance

56. In the Balance Sheet of a company which Sheet.

(A) General Reserve
item shall be sub-classified as : (i) Secured,
(B) Capital Reserve
considered good; (ii) Unsecured, considered
(C) Goodwill
good; (iii) Doubtful.
(D) None of the above
(A) Long-term and Short-term Trade
60. The Board of Directors of the Company,
Receivables who has to form a Corporate Social
(B) Long-term loans and advances Responsibility Committee, shall make sure
(C) Short-term loans and advances that the company spends in every financial

(D) All of the above year, minimum ............. % of the average

net profits made during the 3 immediately
57. External Reporting Board (XRB) belongs
preceding financial years as per the CSR
to :
policy.
(A) New Zealand
(A) 1
(B) Australia
(B) 2
(C) USA (C) 5
(D) UK (D) 10

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PART—II
61. Which of the following is the social purpose
of Cost Audit ?
(A) Detection and correction of abnormal
losses
(B) Detection of errors and frauds
(C) Determination of inventory valuation
(D) Pinpointing areas of inefficiency and
mismanagement for the benefit of
shareholders and consumers
62. Following is not an advantage of effective
Management reporting system :
(A) Improves decision making
(B) Improves responsiveness to issue
(C) Improves efficiency of resources
(D) None of the above
63. A company has Profit/Volume (P/V) Ratio
40 percent. By what percentage must variable
cost be decreased to offset 25% reduction
in selling price, so as to maintain the same
P/V Ratio ?
(A) 15%
(B) 25%
(C) 33.33%
(D) 41.67%
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64. MOON Ltd. is developing a new production
process. During the financial year ended 31st
March, 20l8, the total expenditure incurred
on the process was ` 60 lakh. The production
process met the criteria for recognition as
an intangible asset on lst December, 2017.
Expenditure incurred till this date was ` 32
lakh. Further expenditure incurred on the
process for the financial year ending 3lst
March, 2019 was ` 90 lakh. As on 31st
March, 2019, the recoverable amount of
know-how embodied in the process is
estimated to be ` 82 lakh. This includes
estimates of future cash outflows and inflows.
The expenditure to be charged to Profit and
Loss Account for the year ended 3lst March,
2019 is ...................... lakh. (Ignore
depreciation).
(A) ` 118
(B) ` 82
(C) ` 36
(D) None of the above
P.T.O.
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65. Risk-Free Rate of Interest on Govt. Treasury 68. Sales Management is more concerned

Bonds 5.5%, Average Return on Market with :

Portfolio 18%. Beta is 1.8. Security is said
to be overpriced, if actual return is :
(A) 29%
(B) 28%
(C) 27%
69.
(D) None of the above
66. Production 11,000 units @ ` 11.50 per unit,
Closing Stock of finished Goods 3,000 units.
Opening Stock 2,000 units @ ` 14 per unit,
Selling and Distribution Expenses 20% of
(A) Ageing Schedule of Debtors
(B) Product Cost Variance Analysis
(C) Capital Expenditure and Forward
Commitments
(D) None of the above
XYZ Ltd. manufactures three products X,
Y and Z. The Sales Value Mix Ratio of these
products are 20%, 30% and 50%
respectively. The corresponding Variable
Cost to Sales Ratio is 50%, 30% and 20%.
The total fixed costs are ` 35,500. Calculate

Cost of Sales, Profit @ 25% on Sales. Overall Break Even Point (in Value) :

Calculate Profit per unit : (A) ` 50,000

(B) ` 60,000
(A) 15 per unit
(C) ` 71,000
(B) ` 10 per unit
(D) None of the above
(C) ` 5 per unit
70. Risk-Free Rate of Interest on Govt. Treasury
(D) None of the above
Bonds 5%, Average Return on Market
67. Which section of the Companies Act, 2013
Portfolio 17.5%. What must be the beta,
deals with audit of cost accounting if the security is correctly priced with actual
records ? return of 25% ?
(A) Section 158 (A) 1.2
(B) Section 139 (B) 1.3
(C) Section 168 (C) 1.5

(D) Section 148 (D) 1.6

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71. Cost Audit Report is required to be prepared 74. Sales (in units) : Jan. 1,000, Feb. 2,000,
Mar. 3,000, Apr. 4,000. 20% of the Sales
in : are on cash basis and the balance on credit

(A) Form CRA-1 basis. Uniform Selling Price—` 20 per unit.

50% of credit sales are collected in the month
(B) Form CRA-2 following the sales, 50% of the remaining
in the second month and the balance in the
(C) Form CRA-3
third month. Calculate the total amount of
(D) Form CRA-4 Cash Sales and Collection from Debtors
during the month of April :
72. Which of the following is not a method of (A) ` 52,000

Transfer Pricing ? (B) ` 36,000

(A) Market based transfer pricing
75.
(B) Cost based transfer pricing
(C) Negotiated transfer pricing
(D) None of the above
(C) ` 50,000
(D) None of the above
Sales (in units): Jan. 1,000, Feb. 2,000,
Mar. 3,000, Apr. 4,000, May 5,000.
25% of the Purchases are on cash basis and
the balance on credit basis. Uniform Selling
Price—` 20 per unit. This price was fixed

73. Top Management is more concerned
with :
(A) Ageing Schedule of Debtors
(B) Product Cost Variance Analysis
(C) Capital Expenditure and Forward
after adding 25% to cost. No stock remains
at the end of a month. Purchases are made
one month in advance and 50% of Credit
purchases are paid within one month and
the balance in two months. Calculate the total
amount of Cash Purchases and Payment to
Creditors during the month of April :
(A) ` 62,000

Commitments (B) ` 46,000

(C) ` 50,000
(D) None of the above (D) None of the above

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76. A company sells two products, J and K.
The sales mix is 4 units of J and 3 units
of K. The contribution margin per unit are
` 40 for J and ` 20 for K. Fixed costs
are ` 3,08,000 per month. Compute the
individual break-even point of product J and
product K :
(A) 800 units and 600 units
(B) 600 units and 800 units
(C) 5600 units and 4200 units
(D) 4200 units and 5600 units
77. Which of the following is true ?
(A) The main stress of Zero base budgeting
is on why a unit needs to spend.
(B) Zero base budgeting facilitates the
introduction and implementation of the
system of MBO.
(C) Performance Budgeting requires
Establishment of Responsibility Centres.
(D) All of the above
78. Under section 247 of The Companies Act,
2013, a Registered Valuer shall be appointed
by the Company’s :
(A) Board of Directors only
(B) Company Secretary only
(C) Director Finance and Accounts only
(D) None of the above
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79. SEBI (Share Based Employee Benefits)
Regulations, 2014 apply to the :
(A) Employee stock option schemes and
employee stock purchase schemes only
(B) stock appreciation rights schemes only
(C) general employee benefits schemes and
retirement benefit schemes only
(D) All of the above
80. P purchased business from Q on 30th June,
2019. Profit earned by Q for the preceding
years ending on 31st December every year
were :
2016—` 41,000, 2017—` 40,000 and
2018—` 42,000. It was ascertained that
profits of 2017 included a non-recurring item
of ` 1,500 and profit of 2018 was reduced
by ` 2,000 due to an extraordinary loss on
account of theft. The annual premium was
` 200 per annum. P at the time of purchasing
the business, was employed with Sufitel
Associates and was getting ` 500 p.m. He
intends to replace the manager who at the
present is getting ` 350 p.m. The goodwill
is calculated at 2 years purchase of the
average profits. Calculate the goodwill of the
business :
(A) ` 84,000
(B) ` 78,334
(C) ` 75,455
(D) ` 85,445
Contd. .....
A
 : 17 : 425
81. The relationship between the risk and return 84. Which of the following is also known as
working capital ratio ?
established by the security market line is
(A) Current ratio
called ................
(B) Liquid ratio
(A) Earning based model (C) Debtor turnover ratio
(B) Arbitrage pricing theory (D) Cash reserve ratio

(C) Economic value added 85. A ............. is a booklet specifying the

objectives of an orgnaisation in relation to
(D) Capital asset pricing model
its spending strategy.
82. Ind AS 33 deals with ............
(A) Budgetary control
(A) Earning per share (B) Budget manual
(B) Financial Instrument Presentation (C) Key factor
(D) Budget controller
(C) Fair Value Measurement
86. From the following information, calculate net
(D) None of the above
profit ratio :
83. Which of the following is not an objective
1
Gross Profit is th of cost and sales is
of Activity Based Costing ? 4
` 2,00,000. Indirect expenses is
(A) Activity Based Costing is a two-stage
` 12,000 :
product costing method
(A) 19%
(B) The cost pools in the two-stage (B) 20%
approach now accumulate product (C) 14%

related cost (D) 25%

87. Beta of Market portfolio is always .........
(C) It is based on the concept that products
(A) 0
consume activities and activities
(B) 1
consume resources (C) Less than 1
(D) None of the above (D) More than 1

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425 : 18 :

88. Average profit of a firm is ` 48,000. The 91. From the following, calculate production for
rate of capitalisation is 12%. Assets and the 4th quarter :
liabilities of the firm are ` 4,00,000 and Units
` 1,70,000 respectively. Find value of Sold
Goodwill : Q1 12,000
(A) ` 2,30,000 Q2 15,000
(B) ` 4,00,000 Q3 16,500
(C) ` 1,70,000 Q4 18,000
(D) ` 1,90,000 Opening units 10,000 at the beginning of Q1
89. Value of share based on earning basis method and closing units 12,500 at the end of Q4.
is calculated as : 2
Production is rd of current quarter
(A) (Possible rate of dividend/Normal rate 3
1
requirement and rd of next quarter
of dividend) * Paid up value per share 3
requirement :
(B) (Normal rate of dividend/possible rate
of dividend) * Paid up value per share (A) 12,000 units

(C) (Normal rate of dividend/dividend per (B) 20,500 units

share) * Paid up value per share (C) 18,500 units

(D) None of the above (D) 18,000 units

90. Selling price of a product is ` 32/unit. 92. ............ is regarded as a specialised branch

Variable cost ratio is 50%. Fixed cost is of accounting which involves classification,

` 96,000. Units sold are 10,000. Calculate accumulation, assignment and control of

Margin of Safety in percentage : costs.

(A) 40% (A) Costing

(B) 60% (B) Cost Accounting

(C) 50% (C) Cost Accountancy

(D) Cannot be determined (D) Cost

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93. Margin of Safety may be improved by : 97. Current ratio is 2.5 : 1 and Liquid ratio is
(A) Lowering Fixed Cost 1 : 1. Stock is ` 60,000. Calculate current
(B) Increasing Volume of Sales liability :
(C) Increasing Selling Price (A) ` 40,000
(D) All of the above (B) ` 60,000
94. Primary packaging material is an example (C) ` 1,00,000
of : (D) Cannot be determined
(A) Direct material 98. Monsoon is an example of key factor in which
(B) Indirect material of the following indsutries ?
(C) Direct expenses (A) Motor car
(D) Indirect expenses (B) Aluminium
95. If sales in an organisation is ` 1,00,000, fixed (C) Electro-optics
cost is ` 12,000 and profit is ` 8,000, Profit/ (D) Hydropower generation
Volume ratio is ............ 99. Activity Based Costing assigns costs to
(A) 80% products by tracing expenses to ..........
(B) 8% (A) Products
(C) 20% (B) Sales
(D) 12% (C) Activities
96. What is the General information attached in (D) Profits
the Annexure to Cost Audit Report ? 100. With reference to Ind AS 102, what does
(A) Distribution of Earnings SBP stand for ?
(B) Cost Accounting Policy (A) Share based payment
(C) Details of Industry Specific Operating (B) Share based proportion
Expenses (C) Sum based payment
(D) Reconciliation of Indirect Taxes (D) Shareholder based pricing

1/2020/CMA/NS ANSWERS MARKED IN THE OMR ANSWER SHEET SHALL ONLY BE EXAMINED P.T.O.
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425 : 20 :
Space for Rough Work

1/2020/CMA/NS ANSWERS MARKED IN THE OMR ANSWER SHEET SHALL ONLY BE EXAMINED Contd. .....
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